Agenda - Council - 10/13/2009 - Laserfiche WebLink

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z1 Case #2: Adopt Reimbursement Resolution for Water Tower #3 Background: With the possibility of additional costs in the Ramsey Town Center Project Area and no current internal or external funding sources, the City is looking at the possibility of bonding for the water tower #3 project that is currently being . constructed for an amount of $3,057,000. If a bonding were to occur, the Water Utility Fund, which is the current funding source of the tower construction, could internally loan the Town Center project to be repaid by future land sales. A current interest rate on a revenue bond such as that which would be issued for the tower construction, is at about 3% whereas, a bond issued with no revenue backing, is over 7 %. A reimbursement resolution is attached. This resolution allows the City to repay itself for any costs incurred on a project prior to the receipt of bond proceeds and it can be adopted no later than 60 days after the first construction payment. The first payment on tower #3 was made on August 26, 2009. Motion to recommend that the City Council adopt Resolution #09- 09 -XXX Establishing Procedures Relating to Compliance with Reimbursement Bond Regulations and for staff to bring back the possibility of bonding for tower #3 if the market is showing a sign of increasing interest rates on debt issuance. Action: Ratify the recommendation of the Finance Committee. Case #3: Review of Year 2009 Amended General Fund Budget Background: A brief update was given on the expected outcome of the year 2009 General Fund Budget. A review of Year 2009 Amended General Fund Budget was included in the Weekly Update of October 2, 2009. Action: Informational update only. Attachments: LSA Design, Inc. and Walker Parking Consultants design proposals for parking ramp expansion Resolution #09- 09 -XXX Establishing Procedures Relating to Compliance With Reimbursement Bond Regulations Under the Internal -nue Code Reviewed By: City Administrator: Finance Officer CC: 10/13/09